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tv   First Up With Angie Lau  Bloomberg  October 1, 2015 7:00pm-8:01pm EDT

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see, u.s. stocks rallied from midsession declines with investors cautious ahead of the latest job to -- jobs data. u.s. auto sales reach their fastest and more than 10 years. they say they have an -- identified more executives identified in the bookkeeping scandal. up", i'm angiest lau.
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we have breaking news for you right now. south korea has just released its latest inflation and current account figures. david: we have inflation data coming out of south korea for september. missing estimates in fact -- we saw a fairly clear drop here. .6% is the year in year figure, .8% is the estimate. if you look at the month and -.2%.number, it fell, if you go all the way back to november of last year, is the first time we see that fall. no inflation, you do not understand why a lot of economists now expect the be ok will need to revise their target and forecast. their target is between 2.5 and 3.5%. the forecast is below 1%.
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it is like going to the gym and losing weight. there is what you want to happen, and what will happen. very quickly, just before i go, current account data is out. the surplus for $700 billion. the accountis surplus for august. back to you. angie: thank you. let's check on markets in asia. us here ining for asia, new zealand is climbing, fractionally higher ahead of tpp deal in the works perhaps, this week. new zealand dollar spot is that $.64. it is strengthening on the heels of that better than expected figure from china, pmi data.
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still in contraction mode, but better than expected. we are counting down to the openings in australia, japan, and korea. let's head over to japan's nikkei to 25, last closed up almost 2%. futures pointing to pretty flat open. let's see what today brings their. thatave a stronger yen will definitely impact some of the sentiments for exporters. china is closed for national day celebration. markets will reopen next thursday. india is shut today to commemorate gandhi's birthday. to close inrallied positive territory after spending much of thursday session in the red. let's get more from sue. what was behind these moves?
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sue: it is a wait and see kind of clothes, all three indexes were close to where they begin. we saw the s&p and nasdaq close with names. treasury yields salsa symbolist -- volatility, but ended unchanged at 2%. it means that everyone is looking ahead to be friday jobs data. u.s. companies added jobs last month. unemployment held steady. oft will be a continuation improving labor market. we know that most people will say they are not ready to raise rent -- rates in october. >> we still have a ways to go before december. it is very unlikely they will do anything in october. the decision to go in december will depend on how the data comes in between now and then. we are seeing mixed trends. pricing and a 43% probability of a december rate
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hike. 50% odds for january. the data today showed a mixed picture, manufacture -- manufacturing barely showing growth. on a separate note, the bloomberg consumer comfort index shows u.s. household more upbeat than july in terms of confidence. we will see what the fed is going to make of these numbers, they will be a smile -- friday, later today for you. hurricane joaquin is on the way any state, how will that affect wall street? sue: it is not clear if it will coast,g hit on the east earlier this afternoon, much of the east coast -- a lot of cities putting out emergency management preparations. the new york stock exchange was among them.
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there will be no hit at all, or we will not get more than a little rain. right now they are saying they plan to be open on friday -- monday come october 6. however they do have disaster recovery plans in place should there be any procedures that need to be invoked. that is if they are unable to open. the projections on where the storm will hit on the east coast continue to very. v --ary. angie: we will root for a miss. . thank you. gamingg other headlines, revenue in macau slumped by 33% to just over $2 billion. that is the 16th straight monthly drop because of a slowdown in business.
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73% fromocks are down their peak in january of 2014. amazon says it plans to ban sales of streaming devices from apple and google. they say the products are not compatible with their own streaming service. one analyst says that less than point percent of customers are prime members. amazon fire tv stick is the company's best-selling electronic device. samsung may be latest company embroiled in a so-called defeat devices. the guardian's site and the -- independent lab tests show tvs in europe appear to use less energy during testing than they do during real-world use. and response to the report, samsung dissent -- denied using any such device, saying it a standard, out-of-the-box teacher, used to save energy, not a cheat.
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the socgen ceo says he is not used -- worried about a slumping commodity price. socgen uses short-term hedging contracts for some clients, about 70% of the bank oil and gas covers best customers are investment-grade. are -- the active volatility has not helped the trading conditions. beyond this, what is good in the long term for us is of course with people looking at this volatility, products with a capital guarantee is a kia marketing -- for me, more than ever we have a good, focused, business model. angie: we will hear more from him later, our exclusive with him at 7:30 hong kong time. u.s. auto sales enjoyed their
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biggest jump and more than a decade last month. gm, ford, and nissan, all beat estimates. joining us live from san francisco -- why are auto sales on such a hot streak? >> it is kind of amazing. month after month they keep heating it -- hitting it out of the park. low gas prices, cheap credit, new offerings and technology, and that heightened demand for consumers. angie: even volkswagen saw a rise, despite their software cheat for diesel engines, was that a surprise? >> it was. a loss, had excited instead, volkswagen with the help of audi saw a gain. it is important to remember that defeat devices scandal did not break until dissent -- that number 18, the latter half of the month. theook a couple of days for enormity to sink in.
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we have to remember that not everyone is aware that, for example audi is a full's wagon ran -- full's wagon brand. angie: let's talk about toyota. what was the standout for them? >> they had a great month in part because of record sales for high land or and the -- the highlander and therav. that speaks for the love affair americans have with suv's. angie: we will leave it there. u.s. auto sales, their biggest jump in more than a decade last month. vw faces millions of dollars in --es if the admissions cheating devices sold their. they say fines could reach more than $1 million per breach if the software is found. they say their investigation
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into the scandal may take months to complete. it has put aside more than $7 billion or repairs and recalls. that figure is not thought to include provision for legal fees and fines. honda has recalled nearly 150,000 cars in the united states. civicolves 2014 in 2015 models and the 2015 fit. honda says some cars may be vulnerable to high hydraulic pressure which may pull the drive shaft under stress. honda says no crashes or injuries have been reported. hyundai and kia affiliate have lost a patent trial over a must pay ane, and baltimore company $9 million. in maryland rejected claims owned by them were
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invalid and ruled hyundai's infringement was intentional. says it will appeal any adverse finding. coming up next, diminishing returns -- our next guest tells us level drive markets in the short-term, and how to get the most out of your money. that is coming up next on "first up." ♪
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angie: checking some of the stories making headlines. to havee are reported been killed at a mass shooting at a kennedy collagen organ -- oregon. police say a gunman opened fire at a comedic college. police say the gunman is dead, it has not been clarified that he was shot by officers or killed by -- killed himself.
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spoke about the country's inability to stop mass shootings. president obama: earlier in an interview i said the united states of america is the one advanced nation on earth in which we do not have sufficient common sense gun safety laws, even in the face of repeated mass killing's. later that day, there was a mass shooting at a movie theater in lafayette, louisiana. angie: russia has carried out more strike -- air strike syria, saying they will defend president bashar al-assad as long as his forces are fighting their enemies. they are sharing airspace. moscow says it is attacking islamic state targets, but the havegon says the strikes not been controlled by that
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group. forcesstan says that it have retaken the northern city which fell to the taliban three days ago. they say they are very much in kroll -- in control of the city. the fighting is a major test for the president, as he tries to prevent a taliban insurgency from spreading as the u.s. withdraw troops. he completed his first year in office this week. let's turn back to the market. glencore and their rebound ran out of steam. shares in london a close lower after trading for five minutes over increased volatility. duncan shares fell by the most on record after missing estimates, they reported slowing growth as they face more competition from rivals such as taco bell and starbucks. rising bye chipmaker
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the most in nearly two years after the company reportedly five -- hired a financial advisor. cmc posted losses in 2012 and 2013. overnight i posted a 7% gain. -- they posted a 7% gain. the s&p rally back for months in its third straight day of gains. let's get more with michael comedy president of pacific heights asset management. i guess it is all about the job report today in asia. michael: that is definitely the closest thing to what we have going on. you mentioned a couple of reports, dunkin' donuts being one on corporate earnings. earnings into the q3 season in october, it will be interesting to see what sort of detail comes out of that. what is the revenue growth.
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how are companies being impacted by the strong dollar and anemic worldwide growth. whether the u.s. is strengthening to the same degree everyone thinks. they jobs report is definitely front and center. after that, people quickly pivoted to corporate earnings in the fed. -- and the fed. money managers like yourself, it is about picking the right sectors and the exposure to external markets. michael: in this situation you have a lot of volatility. quickly among classes and sectors volatility as a traitor is fantastic, when you're a long-term investor like our portfolios it is more difficult to navigate the environment, the -- keeping your investments in tax while navigating volatility. volatility does provide a chance to upgrade your portfolio and get involved in names in areas that maybe were too expensive. it does provide some opportunity
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, we are trying to take advantage of that. angie: what are the parameters to buy? are you looking at macro pressures? michael: most definitely, and also individual company characteristics. first, for us it starts with global macroeconomic data analysis, and then it filters depending on what asset class are looking at. it depends on the asset class. angie: can you give examples? michael: in terms of asset examples, bonds, higher quality, , and shorterrisks duration is probably the most risk-averse way to go. something ine up basis points with more aggressive bonds, we do think the uncertainty is real there. there will be some volatility with a rate increase when it happens. in the equity markets we're looking at areas that have been beaten down.
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for long-term investors you want to buy low and sell high. there have been a lot of names in natural resources lately. we are constantly looking for areas that have longer-term opportunities. we still believe in the long-term as a portion of wealth preservation and growth and allocation of gold and precious metals as healthy as well. angie: thank you so much. joining us live from san francisco, president of pacific heights asset management. volatility is the name of the game. it is october. next, why venture capital firms are keen to bankroll this girl band from china. a special report when "first up" returns. ♪
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angie: during up for a big weekend in rugby. wales scored two tries of the millennium stadium to beat e.g., 23-13. scoredother game, france in a 41-18 victory over 8 -- canada. later today the defending
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champions, new zealand take on georgia. the all blacks should be all too powerful, but georgia are the best of the rest of europe. it will be interesting to see how they get on. wales are a step closer to the quarterfinals after a hard-fought three over fiji. we will know more about the england, australia game on saturday. it is the game england must win to stay in the tournament. now then, if you are interested in a sound system, maybe check -- snh 48, why?
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because it is in all group -- all girl group from china. it is also attracting venture capitalist. >> they are young. they are determined, and there are 119 of them. they are modeled after a popular band. the members live together in dorms. they perform seven shows a week. -- they're starting pay is only around $600 a month. by the last round of auditions, 126,000 young women applied for just 48 places. when parents were worried i first joined, but now they have seen how far i have come. they are very proud. chris according to the founder, the company behind them is valued at hundreds of millions of dollars.
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>> they are well received by the public. there is a lot of interest from investors. the former google china chief is one of them. lots of entrepreneurs have told us they are understood, it is more about choosing who we will work with. hadhe group has already commercial endorsements saysding pepsi, lays, one they generate $47 million in revenue here from traditional sources like recording and ticket sales, but also from e-commerce such as digital gifts that fans can buy for their favorite number. >> i have been following him since they started, they might not be international, but i think they have the potential. >> i like the band because they are young, i have seen in 7-8 times the fear. plan to start similar groups in at least 10 chinese cities in the next three years. a sound investment.
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angie: those girls need a raise. you can get more on that and all of today's top stories, on the bloomberg app. notng up next, sorry, but that sorry, more tissue that executives are named in the accounting scandal, but none will be fired. more of that when "first up" returns. ♪ ♪ (ee-e-e-oh-mum-oh-weh) (hush my darling...) (don't fear my darling...) (the lion sleeps tonight.) (hush my darling...) man snoring (don't fear my darling...)
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(the lion sleeps tonight.) woman snoring take the roar out of snore. yet another innovation only at a sleep number store.
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angie: it is 9:30 in sydney. that is a live look at the opera house. australia retail sales coming out in the next few hours. we saw some movements in the australian dollar climbing, better than expected. it is a leading indicator of the economic momentum of china. we are 30 minutes away from trading there, as well as japan and south korea. you are watching "first up are up". "first ♪
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the top stories this hour, the latest economic snapshot from korea points to slowing growth. 6/10 of 1%ices rose last month. that is well below 1% for the 10th straight month. it is also well below what economists had estimated. as for trade, korea's account surplus was just under $8.5 billion. american manufacturing has taken a hit from week global demand as a stronger dollar and slower growth in emerging market hurt overseas sales. it fell to 50.2 last month. 50 is the dividing line between expansion and contraction. u.s. auto sales enjoy their biggest jump in more than a decade last month. cheap gas and credit fueled sales of pickups and suvs. gm, ford, and nissan all beat estimates.
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nissan posted record sales thanks to its rogue model. news, japan's unemployment rate have come in at 3.4% for august. were predicting the rate would stay at 3.3%. there.o full employment let's check on the yen. juliet is standing by. juliet: let's take a look at the yen, it was the best-performing currency in september. little bit ofa strength against the greenback at the moment. it has moved by 2/10 of 1%. had a little flat day yesterday during trade. it is going to be a bit of a choppy and cautious day of trade here in asia come is similar to what we saw in the u.s. overnight. let's take a look at that map
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and see how the u.s. stocks fared. everyone is awaiting this u.s. jobs data coming through tonight. jobssts expect 200-1000 created, that is the lowest forecast since march 2014. i guess we have seen a little bit of a mixed move across europe and in the asia adi index. the china u.s. index down point for a 1% -- .4%. looking at the picture here at the moment, only new zealand is open -- up by 1/10 of 1%. they have had two sessions of losses. and australia will come back online, there had been a comments that the they could japan officials say there is little need for expansion of monetary stimulus. they will hold off until they get a clearer picture of the economic outlook.
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ford members will meet on october 6 and seventh. we will have that reaction to the south korea data that we had today. september consumer prices are rising above estimates -- the -- estimate they rose 5.6% by .6%. australia sales will be out in two hours. checking in again on the yen, holding at 119.84. angie: thank you. the slump and commodity prices have hit producers and traders around the world. the socgen ceo says he is not worried about the impact on revenue. speaking exclusively to bloomberg's manus cranny in london, he also spoke about the volatility in china.
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there is a kind of overreaction to something which is not, according to me a surprise. having traveled to china quite often, he could have seen the beginning of this year, the first time a slowdown. at the same tom -- time i think there is an overreaction when people think that china could turn into a kind of cow. about this needs to change toward a more service driven model, i think china can address that, i think it will take some time. we might see a slower growth, maybe 5%-6% in the next three years. : we have had a glencore moment, that blowout in the equity market, it had global impact in terms of our view of commodities. lehman-esque moment in commodity markets? >> i don't think so.
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i don't think you will the same thing and commodity sector. be a, i think it might longer-term, the question is how long will it last? in a scenario we might have where you the u.s. and europe might do well in 2016, it is more of a two or three your thing. manus: there is this view in europe at the moment, the financial is nation -- n--are youzatio concerned from a european banking perspective that the commodity will begin to have an impact in terms of numbers for -- banks run europe in 2016 around europe in 2016? >> i don't think so. we have to build businesses where we can provide added value. the commodities sector -- which is very important will remain in
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the tenure of an important sector. second, keep an expertise in this sector. to have an expertise in the right financing. major recipe for success it seems to me going forward, and the volatile world where at the end of the day, crisis can happen, what predicted the situation in russia two years ago, the concentration of risk. the management of risk. you need a balanced portfolio of businesses. you need to avoid and over concentration in a sector. angie: china has been trying to shake up its inefficient state sector for years, but with little success. reform growth making more urgent, beijing is looking now at perhaps a likely model for inspiration. does the answer lies in
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singapore?- lie in >> it may be well. china has looked at singapore since 1978, they visited to look at the economic model. singapore xog that we are of great interest to beijing. like china, singapore has a number of oe, except they are called glc's. they are across a number of sectors like banking, telecom, we are talking about singapore airlines, they are partially owned by those holdings. in aboutst shareholder , third of the companies traded they own but do not participate
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in the day-to-day running of the companies. temasekour decades that expanded, its value has risen. it is the success that china wants. they want to increase private ownership, while avoiding mass privatization. angie: why not the russian model? they also sold off its soa's -- soe's/ >> you are right. when they sold them off, they ended up in a hand of small -- a small group of oligarchs. the idea really is to make the soe's, bigger, stronger, and be the foundation of the china socialist market economy. china wants to have a more hands off approach to operations. like temasek,st
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that means consolidating others, that is the difficult part. that involves a major restructuring that china will have to do more -- first. some say that could be negative for china's growth in the short-term. it has to go through short-term pain to get gain any long-term. -- in the long-term. angie: thank you. time now for a look at some of the top corporate stories on a bloomberg terminal. here is david. david: it's have a look at the biggest chipmaker in the u.s., it has exceeded estimates in profits. net income was 470 $1 million, beating expectations, still a drop, 59% from a year earlier. the revenue fell 15%.
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only sluggish growth, pcs and he's decline -- continue to decline. j.p. morgan chase is said to pay to biggest portion of a deal pay back the fact that they conspired. sources tell us that jpmorgan will pay $595 million. to make it easier for electronic traders to enter the phase. zuckerbergabout mark , his backyard privacy campaign is a step closer to trial. request toied his throw out claims that he did not keep his word and a land deal. a neighboringof property says that zuckerberg went back on a promise to introduce him to silicone valley's elite as part of their
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agreement. those are the top stories of this hour. toshiba has raised eyebrows by saying that 30 more executives involved in its accounting scandal will not be fired. fall ofe has seen the three company president so far, and wiped more than $1.3 billion off of reported profits. shery ahn is here with the latest. been presidents have fired, but the 30 executives -- they are fine. current president is saying those people involved in the accounting fraud, they will be punished, but not dismissed. they will stay on payroll. of course toshiba has not just of profits,billion that $6 million in market value since they discovered that they had been overstating profits in
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about seven years. on --s he will can carry he will carry on with restructuring, including job cuts, not for the executives, but for people in underperforming businesses such as appliances, personal computers, televisions, and semi conductors. three former presidents have resigned, the board has been revamped. they brought in more outside directors, but now we are hearing him say of those directors dismissed from that board overhaul, two of them still remain on the payroll as advisors. angie: the prime minister vowed to improve corporate governance in japan, where is japan? ahn: they are drying up comparisons with other western cultures saying ge has zero-tolerance policies, where you are accused of wrongdoing and fired.
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that is clearly not the case for toshiba. as president even staying on president, despite repeated calls for shareholders to step down. a was approved in shareholders meeting, although the meeting was interrupted several times of people shouting over him. the prime minister has vowed to increase transparency, to improve corporate governance, this is coming from the highest levels of government. there is debate on how effective this will be. we are seeing these approaches where firms stick to guidelines, but they do not carry out real reform. we have seen the big japanese business lobby refusing calls for more outside directors, because they want firms to have more freedom in deciding their own structures. angie: struggles remain, thank you for that. coming up next, close to a deal. negotiators are looking to overcome the final sticking
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points for tpp. we will discuss the key issues next. you are watching "first up. ". ♪
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angie: checking other stories making headlines around the world. the u.n. human rights council has approved resolution of the civil war entry lockout. thealls on allowing identification and punishment of those responsible for alleged war crimes by both government forces and militants. the war ended in 2009 with the defeat of the tigers, the u.n. estimates that at least 80,000 people died in 26 years of fighting, including up to 40,000 civilians in the final months of the war. iran has almost doubled the number of its pilgrims it's said -- it says died in his tempe -- in the stamp a.
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died arabia ss 769 people -- says 769 people died. they suggest the true casualty figure might be near 1000. nepal says it is running out of fuel and medical supplies because of an unofficial blockade imposed by india. more than 1000 trucks are stuck at the border with shipments of essential goods. nepalese say india is retaliating against their government since they approved a new constitution seen by new guilty as discriminatory towards nepal's ethnic indian community. negotiators say there are just three or four sticking points now to overcome to get an agreement on the transpacific partnership.
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they are hopeful of completing a deal this week. let's break it down with jackson who chairs the asia-pacific council. this is a closely watched set of negotiations, very private and not for public consumption. to the criticism of so many people around the world and those involved in the country -- countries who will be members of tpp, this is one of the main issues? jackson: these negotiations have to be closely held in private so they can do their job and negotiate. get a dealere is to that each of these negotiators can get back to their legislative hotties, and -- bodies and get approval. as soon as an agreement is reached, it will go back for approval, that is when it will be made public. the public discourse can take
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place -- transparently and in public. angie: of course -- does a deal have to be struck first. , this is ground zero right now, over the next few days, how likely will we see a tpp deal? jackson: it feels like there is him and him, but we wait -- momentum, but we wait and speculate. the trade ministers, i understand our meeting now. they are in atlanta with an intent to close the deal. there are three or four issues that are tough, but there does feel like there is momentum, greater than 50-50 chance that will you will get an agreement -- we will get an agreement. is a lot of upside, but there is a lot of details that needs to be hashed out. it looks like there could be one
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, 45% of theissue entire vehicle must originate to get that tpp terrorist exclusion -- terrace exclusion, it looks like they're close to that rule being agreed upon, how significant is that for countries like japan where their supply chain extends outside of japan? jackson: a couple points, we have learned in maui at the end of july that this was a major sticking point, especially between japan and mexico, and canada. reachingthat they are an agreement at 45% i think is significant. it is down from a 60% threshold that -- under nafta, but it is higher than the original 30% role of origin that japan had proposed. what you see is that is the spirit of negotiation, which is
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what is happening right now and what we want to see coming out of atlanta. the other reason than why this progress is important is because ppp -- tpp of the end of the day after it is approved, is a aspirational agreement. that means that it is open for other countries to join. if you set those thresholds on auto parts too low, what is the incentive on countries like thailand for joining down the road, in the future? i think that a nice compromise around 45%, if that comes out, that should be healthy for the agreement overall. angie: we will leave it there, we ran out of time. jackson cox, chairman asia-pacific council. we all wait and see if a tpp deal is indeed ready to be announced. ,oming up next, under pressure
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we will watch shares of a japanese retailer after its first half losses triple. first up is back in two. ♪
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angie: welcome to the stock exchange, we are taking a look ahead to the openings. we have reporters here to tell us what stocks they are keep an eye on. julia: -- a not too bad. it is never too late to learn a language. 32%, their operating income was up 15%, above estimates, strong rise there. operating profit at 1.6%. bloomberg research has seven cell zero holds, and one -- sell.
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they make bearings for tools. david: we bear witness to the news everyday. let's look at shipping stocks. angie: say that three times fast. kawasaki -- they will be looking at 8 billion revaluation charge. angie: what happened? david: i think they are reevaluating securities. 27 billion with their net income. angie: upside, downside. shery ahn: lost more than tripled in the first half. andretail music software video material, for the past six months they have plunged more than 20%, they are still not oversold.
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shinseido. angie: that is the verdict for the stock exchange. back in an hour to see how they have done. in the next hou
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john: i'm john heilemann. mark: i'm mark halperin. "with all due respect" to the house of representatives, anybody seen kevin mccarthy? ♪ mark: on the show tonight, jeb, marco, and putin. but first, lots of lots of hillary and a touch of bernie. there is plenty of news crossing the computer screens in brookland -- brookland today, starting with a surprising announcement that an old socialist from vermont is giving hillary clinton a run for her money when it comes to money, as in fundraising. bernie sanders announced that he raised $26 million over the last three months, most of that f


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